Bitcoin Sees 'Short Term Volatility' After Inflation Data, Altseason Remains Distant

Bitcoin BTC/USD and the broader crypto market briefly dipped in mid-day trading, reflecting worries over accelerating inflation.

What Happened: Crypto analyst Ali Martinez commented “not good” on the unexpectedly high inflation numbers as analyst Kevin pointed out that headline inflation above 3% is a bearish signal and reinforces the idea that altseason is still far off.

Trader Ash Crypto, however, sees the pullback as short-term volatility, arguing that a 0.1% CPI difference (from 2.9% to 3.0%) was mostly due to higher oil prices—a predictable seasonal effect.

“If CPI expectations had been set at 3.0%, today's number would be seen as bullish. People don’t actually understand the data—they just react to popular predictions,” added the trader.

Also Read: Bitcoin, Meme Coins Dominate Crypto, But Other Projects Suffer, Analyst Says

What's Next: Daan Crypto Trades believes that while the CPI surprise isn’t great for short-term price action, it removes an uncertainty from the market. However, potential new tariffs remain a risk.

#CPI Coming in above estimates. Not great short term but let's see how the market reacts.

Regardless of the number, it's good to have another "uncertainty" out of the way in the short term.

Potential new Tariffs still something that's likely coming but at least the market has… https://t.co/730ixetkIj pic.twitter.com/W6B4zUKARS

— Daan Crypto Trades (@DaanCrypto) February 12, 2025

Looking ahead, TheFlowHorse predicts the S&P 500 to possibly move lower next week, putting Bitcoin under pressure.

Economist Alex Krüger noted that while CPI was hotter than expected, a March rate cut was already unlikely as odds fell from 4.5% to just 0.5%.

The first Fed rate cut is now projected for September instead of July.

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• Why Bitcoin Outperformed Solana, Ethereum In Last Week’s Flash Crash

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